THE Kingdom Meikles Africa Limited extraordinary general meeting failed to take place yesterday after an interdict by the High Court ordering that the EGM be held after Nigel Chanakira has recovered or appointed someone to act on his behalf.This followed the successful application by Chanakira’s lawyers from Dube, Manikai and Hwacha before Justice Karwi yesterday morning, interdicting the proceeding of the EGM because Chanakira is hospitalised in South Africa.
An EGM was called to deliberate on changes to the board of KMAL, which would see the ousting of three directors namely Chanakira, Callisto Jokonya and Sibusisiwe Bango.
A sizeable number of shareholders showed up at the venue of the EGM which was scheduled to start at 10 am and registration started despite the fact that KMAL directors had not turned up.
An announcement was then made a few minutes after 10asm, telling the shareholders that the EGM could not go ahead because of the court order.
All questions were referred to the EGM chairman Muchadei Masunda who was not at the venue.
Investigators BCA Consulting, Budhama Chikamhi and Cleopas Mukungunungwa, had on Sunday written to Masunda, in his capacity as the KMAL chairman, advising him that the EGM could not go ahead without the approval of the investigators since the company was specified.
This was challenged by Masunda who in his response to the notice on Tuesday argued that the appointment of the investigators was in the first place invalid.
Masunda also argued that even without looking at the validity of the investigators’ appointment, their summary of the provisions of the Prevention of Corruption Act as stated in the notice were
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Holding an EGM of shareholders is not an act or activity covered by the Prevention of Corruption Act, pointed out Masunda.
“The prevention of Corruption Act grants to you no powers to issue a directive as you are attempting to do in the fifth paragraph of your letter and therefore, I will not comply herewith,” said Masunda in response to the letter from the investigators.
The investigators had in the letter directed that Masunda as “chairman of the board of KML, a specified person, prepare, circulate and publish a notice whose contents shall be approved by the investigators, calling off the EGM set for the 24th of September.”
The investigators had also said that there was evidence that there were cases of “bad faith, connivance and outright misrepresentation on the part of some board members of KML”.
They went on to say that there were some instances where issues were referred to John Moxon for implementation by Masunda without the investigators’ approval.
In his response, Masunda said the accusations were defamatory not only to himself but also to other persons who were mentioned in the notice.
“”I record my resentment of the suggestion that I have, at any time, acted other than in the interests of the company, or in a manner likely to promote the interests of any group of shareholders to the exclusion of the interests of the company, or other shareholders,” said Masunda.